Doubling the future value will cause:
A. the interest rate, i, to double.
B. the present value to fall by half.
C. the present value to double.
D. no change to present value, only the interest rate.
Answer: C
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In 2014, foreign purchases of U.S. corporate stocks and bonds
A) doubled. B) grew at a faster pace than foreign investment in U.S. corporate bonds. C) grew at a faster pace than foreign investment in U.S. government bonds. D) fell.
If you deposit $300 in your bank and the required reserve ratio is 10%, your bank will have
A) an increase in required reserves of $300. B) an increase in required reserves of $270. C) an increase in required reserves of $3000. D) an increase in required reserves of $30 and an increase in excess reserves of $270.
Most statistical studies on the relationship between real interest rates and saving conclude that higher real interest rates
a. increase saving. b. tend to decrease saving. c. tend to decrease both consumption and saving. d. have no effect on saving.
In the Keynesian causal chain, changes in GDP cause changes in the level of interest rates
a. True b. False Indicate whether the statement is true or false